I’m in the UK but I’m sure the logic around much of the world is the same. It seems like an incredibly bureaucratic waste of money to tax public sector wages, rather than just pay the workers upfront what they would get post-tax. I might be missing something though, so hope someone on here might enlighten me if I am!
In: Economics
You don’t know what their income tax will be purely from their wages.
They might have investments, other earned income, other unearned income, pension income, tax credits, tax deductions, spousal income, alimony, child credits, dependents, they may be a dependent. In the US, you also have multiple government’s that don’t work together for taxes. You have Federal income tax, State income tax, city income tax. On top of that, the amount of Federal income tax is affected by how much State and city taxes are paid. Combined with all the other items above, it’s actually easier to pay them just like anyone else and require that they fill out their annual tax returns.
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